The sale comes after cash-strapped ProMOS (5387.TWO) had disposed of chip-making equipment to Taiwan's Powertech Technology (6239.TW) for T$798 million ($24 million) and to the world's top contract chip maker Taiwan Semiconductor Manufacturing Co Ltd. (2330.TW) (TSM.N) for T$580 million. [ID:nTP318773]

ProMOS, in which Japan's top memory chip maker Elpida Memory (6665.T) owns a stake, would book a T$52.8 million loss on the sale to U.S.-based Kingston, according to a company statement ProMOS filed to the Taiwan stock exchange late on Wednesday.

Investors have been worried that the loss-making company would be unable to raise enough cash to pay back $330 million in convertible bonds after they mature in mid-February.

Talks to consolidate Taiwan's struggling DRAM sector gained pace on Wednesday, with major domestic and foreign players meeting government officials in a bid to reach deals as the Lunar New Year approaches. [ID:nTP360236]

The talks pushed shares of ProMOS and bigger rival Powerchip (5346.TWO) higher to close by their 7-percent daily limit, beating the broader market's 0.13 percent gain.

The global DRAM industry is suffering from its worst ever downturn since last year, as prices plunged and most major players, such as South Korea's Hynix (000660.KS) and Elpida, posted huge losses.

($1=T$33.6)

By: DocMemory
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